MGM Resorts ‘will buy BetMGM’

MGM Resorts will look to buy sports betting brand BetMGM if DraftKings acquires its joint venture partner Entain, Bloomberg quoted CEO Bill Hornbuckle.

That came after DraftKings announced an offer to buy Entain for $22.4bn. Not only would MGM buy BetMGM, but also the technology that Entain provides for the brand.

MGM previously announced that it could potentially take BetMGM public or obtain a majority of board seats in order to keep the brand out of DraftKings’ hands.
DraftKings has until October 19 to make a formal offer for Entain per UK takeover regulations.

MGM said it has the power to block a potential acquisition by a competing business, giving it leverage to gain control of BetMGM without spending a great deal of cash, Bloomberg reported.

BetMGM is projected to generate more than $1bn in revenue next year. Entain rejected an $11bn proposal from MGM in January, saying the offer undervalued the company.

Source: Fantini’s Gaming Report